The mechanism of transformation of language layers, which includes insetting, merging and switching, is very important for the analysis of logical problems of language. Due to a failure to understand this mechanism, many problems, puzzles and mistakes came into being in the circle of western philosophers of language,such as Carnap’s “two ways of speaking”, Russell’s puzzles of “identical substituting”, Frege’s problem of “indirect context”and the “extensional meaning” of American general semantics. By using the theory of the mechanism of transformation of language layers, all these problems can be analyzed and solved easily.